Question for Aran/SteveProperty Management. I have heard that tenants can trash the place without much comeback (except loss of bond).1) Do property managers actually inspect the property (as they do here)? How regularly?2) Is it your experience that rentals tend to get trashed, and this is a cost that may have to be factored in?Cheers Peter.

QLD – YES.Allianz as stated do free cover until settlement (If you purchase through Ray White, allianz may call you with this offer !!).Can anyone advise the purpose of a final inspection. Usually done within the last 24 hours prior to inspection? If i was to inspect a house that had burnt to the ground (r flooded) before settlement could i not…[Read more]

Interesting comment TerryW. I had not thought of it like that. With a big enough LOC (s) i could never actually pay off the loan, just shift the account from which money was owed. So would always have 100% loan for property. -Unless i desired otherwise.

TerryW,In which case i take it the normal approach is lend the trust 20% from LOC. Get the trust to borrow 80%, so that 100% of interest costs are incurred by the trust for the property.

The concern i have is more in relation to paying the principal portion out of the LOC. As any interest on this would not be tax deductible….so the LOC would then have some good debt and some bad (breaking the nexus??). Just trying to avoid if i can and wondered how others had achieved it.

Trusts, Can i askIf i set up a trust. Buy a house (using trust). Pay deposit from LOC.1) Any money the trust loses stays locked up in trust. But can i carry the loss forward into subsequent years until the trust makes a profit?2) Can i claim the interest on the 20% deposit from LOC as a tax loss against my personal income?

Seems a little more complex than that. Property is student accomodation- After 5 years i can certainly remortgage (starting at interest only for first 5 years again) BUT1) Fee involved2) Banks no longer accept student accomodation as security for itself. So i dont wish to remortgage !!

Most common advice i have heard in this regard is -Family trust, under a company banner. With family as beneficiaries (+ a company as a beneficiary)1) For the asset protection2) Reduce land tax 3) ability to redistribute wealth (ie to kids – or lowest earning partner)4) planning for future (ie your death)

Certainly agree capital growth is key. But with little or no ability to repay a loan then we need to be cash flow positive from day one – or at least close to neutral so that all can see that servicing the loan is straight forward – (OR no loan at all !!).Meaning we need to buy a house with reasonable capital growth prospects AND be low priced.…[Read more]

Taking into consideration entry and exit costs…and CGT tax etc.

There is no real info on the web site on which to be able to form an opinion. What are the trends in regards to burials vs cremations? Sounds to good to be true….need a lot more info. Would tread very carefully if i was you

Scott,could you expand a little. What is ebitda??

– Good questionSo many ways to do the numbers!!! – For arguments sake, lets pretend that 1) your loan, at time of purchase, was also 45k. And purchase costs = ZERO2) Council valuation is correct3) Going to disregard income / loss during years 2002 until now (we dont have the info, otherwise we would deduct it off the CG)CG = (250000-115000) =…[Read more]

I'd love to have a copy of a lenders servicability calculator. In particular for CBA.If anyone can help, that would be appreciated.Separately:- currently all my loans are interest only (for the first 5 years, and then P+I). However i have been advised that for the servicability calculation, this is calculated as though i have progressed into the…[Read more]

i have no knowledge of Bayswater, WA. But the most common advice is buy, but hardly ever sell. It makes little sense to sell, incur all the costs of selling/buying – to invest in property somewhere else.- This assumes that the new purchase performs about as well as your existing ip.- The time to sell is when you retire. So choose your investments…[Read more]

Speaking from theory (not experience)1) Cost it.- Targeting what people desire in this area. So perhaps as you indicate, 12 x 1000m2 blocks. With house (3-4 bdrm)Work backwards- What would the expected final product sell for (x12) – What would it cost to build- What will it cost to buy and hold land (12-18 months for DA, and then a further time…[Read more]

APerryCan you advise how you managed to apply and be considered for NRAS accreditation. I have looked at a few NRAS oppurtunities, but usually conclude they are 30-40k too dear, and not in the types of locations i would like to build.Are you in a group that is building >20 properties?

Also Thoroughly recommend Michael Yardneys book "How to grow a multi-million dollar property portfolio"- for philosophy of buying for capital gain.Australian Property Investor MagazineAlso before you buy readSaving Tax on your investment property by Noel Whittaker and Julia Hartman

I use RP Data for suburb histories (all sales in suburb over the last 12 months) ($10 for report). They are handy. A friend uses PriceFinder, but they are costly..

I bought a property in QLD. The contract price was 380k, subject to Building and Pest. I didnt like the report much and negotiated 10k off the purchase price.However i still had to pay stamp duty on 380k !! I think your proposal would suffer similarly (ie higher stamp than required)